The proposed model tenancy law was approved by the union cabinet on June 2, 2021, a decision that is expected to implement numerous reforms and restore the rental housing industry in India. Examine the Model Tenancy Act 2019's proposed solutions for this issue so that the supply-demand gap can be closed.
Key elements of the 2019 Model Tenancy Act
The Act has implemented a number of steps to increase rental housing, including tightening laws and making it profitable for landlords and tenants.
The 2019 Model Tenancy Act will create a "Rent Authority."
States could establish rent authority in cities along the lines of the Real Estate Regulatory Authorities that have been established under the Real Estate (Regulation and Development) Act, 2016. Following its creation, landlords and tenants would need to go before the authorities to record the rental agreement. To keep track of all the information it gets in the form of rental agreements, the authority would create a website.
According to the policy document, "No member shall, after the enactment of this Act, let or take on rent any property except by an agreement in writing, which shall be notified to the rent power by the tenants and landlords jointly, in the form specified in the first timeline, within a period of two months from the date of agreement."
To resolve issues arising under the Model Tenancy Act, rent courts and tribunals
The contracting parties would initially seek a resolution from the rent authority in the event of any unhappiness. If the parties in dispute are not pleased with the rent authority's decision, they may file a complaint with the rent court or tribunal to obtain a favorable ruling. After receiving a complaint, these courts would have 60 days to issue a ruling.
After the establishment of the rent courts, problems involving rented accommodation would not be subject to the jurisdiction of civil courts. Only the rent court and no other civil court—aside from the rent authority's jurisdiction under Section 30—shall have the power to hear and decide petitions relating to rent disputes between landlord and tenant," the Act states.
Landlord-friendly provisions in the Model Tenancy Law
To avert tenants who stay too long
Tenants who remain after the rental agreement expires will be required to pay the landlords double the rent for the first two months and four times the fee for the following months.
To facilitate tenant removal
In accordance with the model policy, if renters don't pay the rent for two consecutive months, landlords may ask the rent court to evict them.
Tenant subletting must be stopped
The tenant is not permitted to sublet the entire rented space or a portion of it without the landlord's prior consent.
Tenant-friendly provisions in the Model Tenancy Law
Landlord’s involvement must be stopped
Many people who live in rented homes lament the fact that their landlords can enter their properties whenever they like. The regulation mandates that landlords must provide a written notice, 24 hours in advance, before visiting the property in order to prevent this from happening.
Source from: navimumbaihouses
